For-profit college fraud investigations scaled back under Betsy DeVos

A Department of Education team that had looked into fraud and abuse by for-profit colleges has been dismantled to the point that it has “effectively killed investigations” into institutions where top hires of Education Secretary Betsy DeVos once worked, The New York Times reported Sunday, citing current and former employees.

The team has gone from about a dozen lawyers and investigators looking into advertising, recruitment, and graduate employment claims of several institutions at the end of the Obama administration to just three team members today, the Times reported. Current and former employees, including former team members, said the team’s mission has been reduced to processing student loan forgiveness applications and examining smaller compliance cases, the newspaper said.

An investigation into DeVry University, now known as Adtalem Global Education, “ground to a halt early last year,” and later, over the summer, DeVos picked Julian Schmoke, a former dean at the school, to be the team’s supervisor, the Times reported.

Meanwhile, probes into for-profit education companies Bridgepoint Education and Career Education Corp. also “went dark,” the newspaper said. The Times reported that former employees of those institutions are working for DeVos as well, including Robert S. Eitel, a former Bridgepoint attorney who is now her senior counselor, and Diane Auer Jones, a former Career Education employee who is now a senior postsecondary education adviser at the department. The department’s recently confirmed general counsel, Carlos G. Muñiz, provided consulting services to Career Education, the newspaper said.